AMAT Stock Technicals: Drops 8.16% on Thursday, RSI Oversold

AMAT’s sharp decline puts a leading semiconductor-equipment maker at the three-month low, with heavy trading and oversold momentum raising the stakes for investors watching the chip industry. Applied Materials fell 8.16% to $375.58 on October 23, extending its five-day loss to 12.66% and its one-month decline to 20.81%, according to market data via Yahoo Finance. The one-day drop was about 1.5 times the stock’s average daily trading range, while volume reached 1.9 times its 20-day average. That combination signals more than a quiet drift lower: sellers were active as the price approached the bottom of its recent range.

Trend & Price Action

The stock is below both its 20-day simple moving average (SMA), at $476.23, and its 50-day SMA, at $471.56. A simple moving average tracks the average closing price over a set period; trading beneath both suggests recent weakness is broad rather than confined to a single session. The 20-day average is also falling, down 3.23% over five days. There is no new moving-average crossover, so the data show no fresh signal that a reversal has already taken hold. At $375.58, AMAT is almost at its three-month low of $375.16 and at the lower edge of the listed 20-day support range. The Bollinger lower band, a measure of price movement around an average, sits at $373.55. The close proximity of these levels makes them immediate areas to watch, but a support level is not a guarantee: a sustained move beneath it could indicate that selling pressure is still overpowering demand.

The Bollinger bands have widened to 43.1%, indicating elevated volatility, while the stock’s position at 1% of the band range places it near the lower boundary. In plain terms, the price has fallen unusually far relative to its recent average, but wider bands also mean larger swings are occurring. A low band position alone does not establish that the decline has ended.

Oscillators & Momentum

Momentum indicators reinforce the picture of a severe sell-off, while stopping short of confirming a recovery. The RSI is 25.2, in oversold territory, and the Stochastic readings are also oversold, with %K at 0.2 and %D at 3.6. These indicators compare recent price moves to identify whether a decline has become unusually intense. Oversold readings can accompany a rebound, but they can persist when selling continues. The MACD remains negative at -22.782, below its signal line at -9.717, with a histogram of -13.065. The MACD compares faster- and slower-moving price averages; its negative reading indicates downward momentum, while the negative histogram shows that momentum has not yet turned positive. That weak confirmation matters: the oversold oscillators describe the extent of the decline, not a settled bottom.

Trading activity adds caution. Volume was 12,994,100 shares, against a 20-day average of 6,873,245, while the on-balance volume (OBV) indicator is falling. OBV uses volume to track whether trading is more associated with buying or selling pressure. Its decline alongside the volume surge suggests participation has accompanied the drop rather than clearly signaling accumulation.

Key Levels & Scenarios

The immediate reference points are $375.16, the three-month low; $373.55, the lower Bollinger band; and $375.58, the listed 20-day support. The average true range (ATR), a measure of typical price movement, is $20.61, or 5.5% of the current price. That high reading helps explain why levels may be tested quickly and why single-session moves need to be interpreted in context. A hold above the recent low could ease immediate downside pressure, particularly if RSI and Stochastic begin to recover and MACD’s negative momentum narrows. A break below $373.55 would weaken that stabilizing case. Overhead, $471.56–$476.23, the 50- and 20-day averages, form a substantial resistance zone: a move back toward them would require a marked improvement from current levels. The listed 20-day resistance is $542.28.

Technical Verdict: HOLD (wait & see)

The technical verdict is HOLD (wait & see). RSI and Stochastic are deeply oversold, but MACD remains negative; the price is below both major moving averages; and falling OBV with above-average volume points to persistent selling pressure. A move below $373.55 would invalidate the stabilizing case by taking AMAT beneath the lower Bollinger band and close to the three-month low. - Ideal Entry Range: $373.55–$375.58, only as a conditional technical zone near the lower band and listed support. - Exit Target (Target Price): $471.56–$476.23, the 50- and 20-day moving averages. - Stop Loss protection: Below $373.55, the lower Bollinger band. For non-traders, the signal is to wait for evidence that selling pressure is easing before treating the oversold readings as a durable turn.

Summary Data AMAT

Last price	375.58 USD
Change 1 day / 5 days / 1 month	-8.16% / -12.66% / -20.81%
Trend / MA-cross	sideways / none
SMA20 / SMA50	476.23 / 471.56
RSI (14) / Stochastic %K	25.2 / 0.2
Bollinger %B / ATR	1% / 20.61
Support / Resistance 20 days	375.58 / 542.28
Data as of	23 October 2026 03:00 WIB

Disclaimer: This technical analysis is generated automatically from exchange data (via Yahoo Finance) and indicators calculated by JournalArta, for information and education only. The verdict and the entry, target and stop-loss levels are not investment advice or a solicitation to buy or sell any security. Investment decisions and their risks rest solely with the reader.